FHFA Rate Index Up Slightly in January

Despite declines in Freddie Mac’s Primary Mortgage Market Survey throughout the month, national data from the Federal Housing Finance Agency (FHFA) shows mortgage rates about a tenth of a percent from December to January.

Based on a collection of data from a small monthly survey of lenders, FHFA reports the contract rate for the composite of all mortgage loans closed in January was 4.36 percent, up 11 basis points from December.

As interest rates are typically locked in 30-45 days before a loan closes, January’s data reflect market rates from mid- to late December.

Account for the addition of initial fees and charges, FHFA put the effective interest rate at 4.52 percent last month, up from 4.40 percent in December.

The average interest rate just for conventional, 30-year fixed-rate loans (with conforming loan balances) was up to 4.67 percent, an increase of 13 basis points.

Meanwhile, the average loan amount for all loans in January was $284,400, up nearly $7,000 from December.